Understanding Financial Crises: Causes, Consequences, and Policy Responses

CAMA Working Paper 05/2013

23 Pages Posted: 19 Jul 2013

See all articles by Stijn Claessens

Stijn Claessens

Bank for International Settlements (BIS)

M. Ayhan Kose

Development Prospects Group at the World Bank

Luc Laeven

European Central Bank (ECB); Centre for Economic Policy Research (CEPR)

Fabián Valencia

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2013

Abstract

The global financial crisis of 2007-09 has led to an intensive research program analyzing a wide range of issues related to financial crises. This paper presents a summary of a forthcoming book, Financial Crises: Causes, Consequences, and Policy Responses, that includes 19 contributions examining these issues and distilling policy lessons. The book covers a wide range of crises, including banking, balance-of-payments, and sovereign debt crises. It reviews the typical patterns prior to crises, considers lessons on their antecedents, and analyzes their evolution and aftermath. It also provides valuable policy lessons on how to prevent, contain and manage financial crises.

Keywords: Global financial crisis, sudden stops, debt crises, banking crises, currency crises, defaults, restructuring, welfare cost, asset price busts, credit busts, prediction of crises

JEL Classification: E32, F44, G01, E5, E6, H12

Suggested Citation

Claessens, Stijn and Kose, M. Ayhan and Laeven, Luc A. and Valencia, Fabian V., Understanding Financial Crises: Causes, Consequences, and Policy Responses (February 1, 2013). CAMA Working Paper 05/2013. Available at SSRN: https://ssrn.com/abstract=2295199 or http://dx.doi.org/10.2139/ssrn.2295199

Stijn Claessens

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

M. Ayhan Kose (Contact Author)

Development Prospects Group at the World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Luc A. Laeven

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Fabian V. Valencia

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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